Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Textbook Question
Chapter 22, Problem 5R
Suppose the company has just the opposite news and now expects unit sales for August, September, and October to be double (200%) the original estimates. What effect will this have on the company’s net income and borrowing? Explain your findings.
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Suppose Naboo Manufacturing's sales increase 20% over the next year. Assuming that all asset accounts change proportionately to sales, what is the external financing needed?
The financial manager of Company X has just received the sales forecast for next year and it indicates that the year's sales are expected to double in the second half. What are the challenges that Company X might face in increasing its production to meet the sales projections and how can these challenges be overcome? What risks does Company X face by ramping-up production to meet the sales forecast?
Suppose a firm has had the following historic sales figures. What would be the forecast for next year's sales
using the average approach?
You must use the built-in Excel function to answer this question.
Input area:
Year
Sales
2016
2017
2018
es es e
$
1,500,000
$
1,750,000
$
1,400,000
2019
$
2,000,000
2020
$
1,600,000
Output area:
Next year's sales
Chapter 22 Solutions
Excel Applications for Accounting Principles
Ch. 22 - Ranger Industries has provided the following...Ch. 22 - Open the file MASTER from the website for this...Ch. 22 - Review the completed master budget and answer the...Ch. 22 - Suppose the company has to revise its estimates...Ch. 22 - Suppose the company has just the opposite news and...Ch. 22 - Prob. 6R
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- Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's accounts receivable. Make the following assumptions: current year's sales are $55,750,000; current year's cost of goods sold is $25,350,000; sales are expected to rise by 25%, The firm's investment in accounts receivable in the current year is $12,600,000. The firm's marginal tax rate is 35%. What is the projection for next year's accounts receivable? $10,320,000 $11,345,000 O $15,750,000 $8,772,000arrow_forwardA company is thinking in investing in one of two potential new products for sale. The projections are as follows: year Revenue/cost £ (Product S) Revenue/cost £ (Product V) 0 (150,000) outlay (150,000) outlay 1 14000 15000 2 24000 25333 3 44000 52000 4 84000 63333 a) Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.b) Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%.c) Which product should be chosen and why?d) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.e) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.arrow_forwardSuppose a firm has had the following historic sales figures. What would be the forecast for next year's sales using the average approach? Year: 2009 2010 2011 2012 2013 Sales $1,500,000 $1,750,000 $1,400,000 $2,000,000 $1,600,000arrow_forward
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